What is Increase In Net Profit Attributable To Shareholders?

468 reads · Last updated: December 5, 2024

The increase in net profit attributable to the parent company refers to the increase in net profit attributable to the parent company after deducting various expenses during a certain period. Net profit attributable to the parent company refers to the net profit attributable to the parent company after deducting various expenses, which reflects the profitability of the company's operating activities and the growth of equity attributable to the parent company. When the net profit attributable to the parent company increases, it indicates that the company's profitability has improved and has a positive impact on the equity of the parent company.

Definition

An increase in net profit attributable to the parent company refers to the rise in net profit that belongs to the parent company's shareholders after deducting various expenses over a certain period. This metric reflects the profitability of a company's operations and the growth of equity attributable to the parent company's owners.

Origin

The concept of net profit attributable to the parent company originates from consolidated financial statements in financial accounting, aiming to accurately reflect the actual earnings of the parent company in the consolidated reports. With the prevalence of corporate group structures and multinational operations, this metric has become a crucial standard for assessing a company's profitability.

Categories and Features

Net profit attributable to the parent company can be categorized based on different financial analysis needs, such as by industry, region, or time period. Its features include: 1. Reflecting the core profitability of a company; 2. Being influenced by multiple factors like market conditions and management efficiency; 3. Serving as a key indicator for investors to evaluate a company's value.

Case Studies

Case 1: Alibaba Group reported an increase in net profit attributable to the parent company in its 2020 fiscal year, primarily due to strong growth in its e-commerce business and cost control. Case 2: Tencent Holdings achieved an increase in net profit attributable to the parent company in the first half of 2021, mainly driven by rapid expansion in its online advertising and fintech businesses.

Common Issues

Common questions from investors include: 1. Does an increase in net profit attributable to the parent company indicate an overall enhancement in the company's profitability? Generally, yes, but it should be analyzed in conjunction with other financial indicators. 2. How to assess the sustainability of the increase in net profit attributable to the parent company? It requires analyzing the company's market environment, competitiveness, and management strategies.

Suggested for You

Refresh
buzzwords icon
Zero-Floor Limit
The term "zero-floor limit" refers to a policy whereby merchants are required to obtain authorization for every transaction processed at their store, regardless of its size. By contrast, some stores only require authorization for transactions that are above a certain size, with that size threshold being known as the store's floor limit.
820 learned

Zero-Floor Limit

The term "zero-floor limit" refers to a policy whereby merchants are required to obtain authorization for every transaction processed at their store, regardless of its size. By contrast, some stores only require authorization for transactions that are above a certain size, with that size threshold being known as the store's floor limit.

buzzwords icon
Lisbon Treaty
The Lisbon Treaty, also known as the Treaty of Lisbon, updated regulations for the European Union, establishing a more centralized leadership and foreign policy, a proper process for countries that wish to leave the Union, and a streamlined process for enacting new policies.The treaty was signed on December 13, 2007, in Lisbon, Portugal, and amended the two previous treaties that established the foundation for the European Union.
1 K learned

Lisbon Treaty

The Lisbon Treaty, also known as the Treaty of Lisbon, updated regulations for the European Union, establishing a more centralized leadership and foreign policy, a proper process for countries that wish to leave the Union, and a streamlined process for enacting new policies.The treaty was signed on December 13, 2007, in Lisbon, Portugal, and amended the two previous treaties that established the foundation for the European Union.

buzzwords icon
Labor Intensive
The term "labor-intensive" refers to a process or industry that requires a large amount of labor to produce its goods or services. The degree of labor intensity is typically measured in proportion to the amount of capital required to produce the goods or services: the higher the proportion of labor costs required, the more labor-intensive the business.
1 K learned

Labor Intensive

The term "labor-intensive" refers to a process or industry that requires a large amount of labor to produce its goods or services. The degree of labor intensity is typically measured in proportion to the amount of capital required to produce the goods or services: the higher the proportion of labor costs required, the more labor-intensive the business.

buzzwords icon
Fast-Moving Consumer Goods
Fast-moving consumer goods (FMCGs) are products that sell quickly at relatively low cost. FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and confections) or because they are perishable (e.g., meat, dairy products, and baked goods).They are bought often, consumed rapidly, priced low, and sold in large quantities. They also have a high turnover on store shelves. The largest FMCG companies by revenue are among the best known, such as Nestle SA. (NSRGY) ($99.32 billion in 2023 earnings) and PepsiCo Inc. (PEP) ($91.47 billion). From the 1980s up to the early 2010s, the FMCG sector was a paradigm of stable and impressive growth; annual revenue was consistently around 9% in the first decade of this century, with returns on invested capital (ROIC) at 22%.
2 K learned

Fast-Moving Consumer Goods

Fast-moving consumer goods (FMCGs) are products that sell quickly at relatively low cost. FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and confections) or because they are perishable (e.g., meat, dairy products, and baked goods).They are bought often, consumed rapidly, priced low, and sold in large quantities. They also have a high turnover on store shelves. The largest FMCG companies by revenue are among the best known, such as Nestle SA. (NSRGY) ($99.32 billion in 2023 earnings) and PepsiCo Inc. (PEP) ($91.47 billion). From the 1980s up to the early 2010s, the FMCG sector was a paradigm of stable and impressive growth; annual revenue was consistently around 9% in the first decade of this century, with returns on invested capital (ROIC) at 22%.

buzzwords icon
Negotiable Instruments
A negotiable instrument is a signed document that promises a payment to a specified person or assignee. In other words, it is a formalized type of IOU: A transferable, signed document that promises to pay the bearer a sum of money at a future date or on-demand.Common examples of negotiable instruments include personal checks, cashier's checks, money orders, certificates of deposit (CDs), promissory notes, and traveler's checks. The person receiving the payment, known as the payee, must be named or otherwise indicated on the instrument. Because they are transferable and assignable, some negotiable instruments may trade on a secondary market.
1 K learned

Negotiable Instruments

A negotiable instrument is a signed document that promises a payment to a specified person or assignee. In other words, it is a formalized type of IOU: A transferable, signed document that promises to pay the bearer a sum of money at a future date or on-demand.Common examples of negotiable instruments include personal checks, cashier's checks, money orders, certificates of deposit (CDs), promissory notes, and traveler's checks. The person receiving the payment, known as the payee, must be named or otherwise indicated on the instrument. Because they are transferable and assignable, some negotiable instruments may trade on a secondary market.

© 2026 Longbridge｜Disclaimer